The project is a run-of-river hydroelectric project, approximately 85 MW in the aggregate, along the
Taquesi and Unduavi Rivers in the Republic of Bolivia, South America. The proposed project involves reduction
of emissions of carbon dioxide through the displacement of electrical energy produced by single-cycle
combustion turbines in the reference case. The project will supply electrical energy to the La Paz area from
run-of-river hydropower facilities and thereby reduce emissions of carbon dioxide from the alternate electrical
energy source.

Contact Person for AIJ Activities (if different from the Administrative Officer)

Surname

(same)

First name, middle name

Job title

Direct telephone

Direct fax

Direct e-mail

5. Description of AIJ project activities

Item

Type of Project

Sector(s)

Energy

Primary activity(ies)

Energy Efficiency

Project Location

Country

Bolivia

Exact location (city, state, region)

La Paz, South Yungas area

Key Dates and Current Stage of Project

Project starting date (month/year)

February 2002

Project ending date (month/year)

February 2037

Project lifetime (years)

35

Current stage of project

In progress (Under Construction)

General Project Description and Technical Data

Hidroeléctrica Boliviana S.A. ("HB" the "Project Company") is proposing to
finance, construct, own, and operate two new run-of-river hydroelectric projects, approximately 85 MW in
the aggregate, along the Taquesi and Unduavi Rivers in the Republic of Bolivia, South America. The project
expects to displace more than 10 million metric tons of greenhouse emission credits over plant life. These
projects are near the small communities of La Chojlla and Yanacachi, located approximately 40 kilometers
east from La Paz, in South Yungas area of Bolivia. The project is being developed as a result of
deregulation of the Bolivian market. Private electric developments are now permitted, with payment based on
either spot market prices for firm capacity and energy or negotiated power purchase agreements. The second
and main phase of the project will commence operation in February 2002.

The project’s net electrical output will be sold under the terms of Bolivia’s Electricity Law,
which regulates electric power production on the basis of economic dispatch and lowest marginal cost of
production. The Bolivian model resembles closely the models found in Argentina, United Kingdom, Chile, and
Peru. Under the Electricity Law, the Project will receive a fixed capacity payment and energy payments for
all delivered energy. A 115-kV transmission line will connect the Project with the Pichu Substation located
near Yanacachi. From the Pichu substation, the power will be transmitted on an existing 115-kV transmission
line to the Kenko substation near the northern portion of La Paz, Bolivia’s major load center.

Date when the monitoring plan became (or will become) operational (month/year)

In process of definition

Types of data that will be collected

Project electric production (GWh)

CO2 estimated emissions

Description of Monitoring and Verification Activities and Schedule for Implementation

The developer will verify that the projections made are established by the actual measured and recorded
emissions. All monitoring will be in accordance with the rules, regulations, and procedures promulgated by
the USIJI, Bolivian Ministry of Sustainable Development and Planning, and the UNFCCC.

B. Governmental approval

Item

Please Complete

Please check one of the following.

This report is a first report.

or

This report is an intermediate report.

or

This report is a final report.

Please check one of the following:

This report is a joint report. Letter(s) of approval of this report from the designated national authority
of the other Party(ies) involved in the activity is(are) attached in Section J, Annex.

or

This report is a separate report.

Additional comments (if any):

C. Compatibility with, and supportiveness of, national economic development and socioeconomic and
environmental priorities and strategies

Compatibility with Economic Development and Socioeconomic and Environmental Priorities

This project will positively impact economic development of the region. This project will produce
significantly cheaper electricity for Bolivia by utilizing existing site, substation and transmission
facilities, reducing project costs per MW and minimizing construction impact. Both temporary and permanent
jobs will be created during the construction and operation of the plant. Technology Transfer –
Capacity. This project will add momentum to developing clean independent power in Bolivia.

D. Environmental, social/cultural, and economic impacts of the AIJ project

Non-Greenhouse-Gas Environmental Impacts of the Project

1. The project requires no flooding, contemplates no resident re location, and is situated in an area
historically used for mining and hydroelectric power generation.

2. Due to the small footprint of the project facilities, impact to soil and forest resources will be
insignificant. Hidroeléctrica Boliviana, S.A. is planning to maintain the forests adjacent to the
generation plants to sustain hydrologic conditions, reduce soil erosion, and preserve biodiversity.

3. Due to the nature of the project, human health will not be impacted. Project medical facilities will
contribute to local medical infrastructure.

4. The plant will not threaten Biodiversity.

5. Access to the site is available by public and private roads. Most equipment, construction materials
and construction equipment will be heavy hauled or trucked to the site. Major equipment will be
delivered by ocean freight to Arica, Chile, or rail to the nearest available siding and heavy hauled or
trucked to the site.

Social/Cultural Impacts of the Project

Hidroeléctrica Boliviana has established a Foundation (Fundacion Taquesi) with the following
objectives:

1. The conservation of cultural, historical, and archaeological resources found near the project site.

2. Assistance in efforts to conserve environmental quality within the areas of influence of the project
and adjacent areas.

3. Improve living conditions of the communities situated adjacent to the project site.

There will be a strong participation from experts in all the areas of work that the foundation will focus.
Such areas are health, education, environment, economic, and archeological.

Economic Impacts of the Project

The project will provide power at reduced cost to the Bolivian national grid, thus allowing the growth of
all other economic sectors.

E. Greenhouse gas impacts of the AIJ project

1. Scenario description

Item

Please Complete for Each Site

Site Designation

Site number (order of presentation in this report)

1 of 1

Site name/designation

South Yungas, La Paz (Taquesi River)

Project sector

Energy

Reference Scenario

Primary activity(ies)

Generation of electricity by run-of-river (Taquesi River)

Has the reference scenario changed since the last report? (If yes, explain any changes below.)

Yes

No

This is the first project report.

Description:

There are no greenhouse gas sources at the project site included in the emissions baseline/reference case.
Sources affected by the project include single-cycle combustion turbines located in the Santa Cruz region
of Bolivia, that would produce fossil fuel-based electricity to inject through the Bolivian Interconnected
Grid if the Taquesi project do not became operative. Those combustion turbines are sources of carbon
dioxide in the baseline case.

Predicted Project Scenario

Primary activity(ies)

Description:

The project involves reduction of emissions of carbon dioxide through the displacement of electrical energy
produced by single cycle combustion turbines in the reference case. The project will supply electrical
energy to the La Paz area from run-of-river hydropower facilities and thereby reduce emissions of carbon
dioxide from the alternate electrical energy source.

Actual Project

Primary activity(ies)

This information is not yet available

Description:

This information is not yet available.

2. GHG emission/sequestration calculation methodology

GHG Emission/Sequestration Calculation Methodology

Site number

1 of 1

Project sector

Energy

Description of Calculation Methodology for the Reference Scenario

General Electric’s Cycle Deck Analysis program was used to calculate the exhaust analysis from an
appropriately sized single-cycle gas turbine—the GE Frame 6 machine. The proposed site elevation near
Santa Cruz, Bolivia, is 1,365 feet above sea level and the weather data collected at the Santa Cruz Airport
indicates an average yearly temperature of 77 degrees F. These values were used as the specific input for
calculation of outputs and exhaust flow analyses.

Approximately 98 MWs of generation is required in Santa Cruz to displace approximately 84 MWs at Yungas.

Weather data sources: National Hydrology and Meteorology Service (SENAMHI) and Meteorology Unit of Viru
Viru International Airport.